Solar panel prices likely to rise ahead of summer 2025

KARACHI: Solar panel prices in Pakistan may see a significant hike ahead of summer, courtesy of the International Monetary Fund’s (IMF) demand to revoke tax exemptions for solar systems.

The IMF delegation argues that solar systems are mainly installed by affluent individuals, making tax exemptions unnecessary.

If this is approved, there would be a great rise in the prices of solar panels, which would, in the end, increase the total cost of installations.

Current Price of Solar Panels in Pakistan

The current worth of solar panels varies in quality and company in Pakistan, starting from an average of Rs. 32 per watt. The tax exemption revocation announcement is, however, expected to skyrocket their prices.

The situation is worsened further by the Economic Coordination Committee (ECC) of the Cabinet formally announcing a new buyback rate for solar net metering, which has been slashed from Rs27 per unit to just Rs10 per unit.

This leaves tens of thousands of users expecting unfortunate circumstances as they have been left with a potential loss and bewildering future invested in it.

The new net metering policy shall allow for all exported solar electricity, which will surely disadvantage those custodians who once sought to save themselves through solar energy.

It appears directed at alleviating the daunting financial burden now posed on grid consumers, but it might sink the hard-earned investments of solar users.

This new framework doesn’t affect ongoing arrangements, but new users and advancements into future solar projects would have to contend with the exhausted rates. The slashing of net metering prices is expected to stall the solar energy sector, which has been riding high on the last few months’ significant plummet in the price of solar panels.